The “virtual” rice fever in late April shows that it remains difficult to ensure food security despite having a huge volume of rice in stock for export.

A nation’s food security is evaluated by a series of criteria. But the bottom line is that each country should have a good distribution network and devise appropriate policies aimed at ensuring all people have access to food sources at reasonable prices. Otherwise, even rich people will be unable to buy rice.

Managers have attributed the fever to State-run and private businesses’ speculation by keeping rice to sell to foreign importers. When exported rice on the world market is offered at US$1,000 (VND16 million) per tonne, specific measures should be put in place to keep domestic rice prices staying at VND10 million/ tonne. It is predicted that the prices of exported rice may rise to US$1,400 (VND22 million) per tonne. What if there is no effective solution to prevent businesses from hoarding rice to sell abroad?

In this case, to rapidly deal with speculation in rise needs administrative instructions. However, when the Prime Minister issued an order many State-owned businesses at both central and local levels had already stored hundred of thousands of tonnes of rice, not to mention coordination between State-owned businesses and private businesses. The public security sector must quickly investigate rice speculators and strictly punish them in order to deter similar action in the future. If not, businesses won’t follow the Government’s instructions.

However, administrative instructions should be used only in emergency cases. Over the long-term, Vietnam should devise specific economic policies. For example, national food reserves increase annually. But we must know how to supply rice to the market in a timely and orderly manner to prevent unreasonable price rises and lack of food in localities, especially in remote, mountainous and ethnic minority areas. On the other hand, Vietnam should not delay signing export contracts too long because at this time the price of rice could hit a record high and then fluctuate due to supply and demand. However, rice exports should not be expanded so that the country can fulfill orders for delivery.

Top priority should be given to ensuring food security and keeping food prices under control. Rice exports should be associated with domestic consumption in order to stabilise domestic prices. In addition, the agricultural sector needs to finalise a food security strategy as soon as possible, under which 3.8-4 million hectares of land will be preserved for rice cultivation to ensure national food security and farmers’ long term livelihood.